BRICS Journal of Economics 2(4): 103-115, doi: 10.38050/2712-7508-2021-4-5
Effectiveness of forbearance measures for Russian commercial banks in the current crisis
Olga VinogradovaCorresponding author: Olga Vinogradova ( o.s.gluhova@mail.ru ) © Olga Vinogradova. This is an open access article distributed under the terms of the Creative Commons Attribution License (CC BY 4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. Citation:
Vinogradova O (2021) Effectiveness of forbearance measures for Russian commercial banks in the current crisis. BRICS Journal of Economics 2(4): 103-115. https://doi.org/10.38050/2712-7508-2021-4-5 |  |
Abstract
Due to the COVID-19 pandemic, real GDP of Russia is expected to fall by 4-6%. The banking industry provides liquidity to Russian business in times of hardship. On the one hand, the Bank of Russia facilitates lending opportunities for the business and subsidizes the mortgage interest rate for banks and the public in order to prevent business bankruptcies. And on the other hand, it provides liquidity to banks via REPO (repurchase agreement) auctions. Currently, there is not enough demand for REPO transactions from banks, but it might increase after other measures of support begin to be canceled. The article studies the effectiveness of current forbearance measures for Russian banks and provides an insight into the future development of the banking industry after the COVID-19 pandemic.
Keywords
banking sector, commercial banks, COVID-19 pandemic crisis, forbearance measures, liquidity, REPO